Why NASDAQ:AXON Is a Standout High-Growth Stock in a Consolidation Phase.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether AXON ENTERPRISE INC (NASDAQ:AXON) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but AXON ENTERPRISE INC has surfaced on our radar for growth with base formation, warranting further examination.

A Closer Look at Growth for NASDAQ:AXON

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:AXON has received a 9 out of 10:

• The Earnings Per Share has grown by an impressive 67.94% over the past year.
• Measured over the past years, AXON shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.65% on average per year.
• Looking at the last year, AXON shows a very strong growth in Revenue. The Revenue has grown by 31.69%.
• Measured over the past years, AXON shows a very strong growth in Revenue. The Revenue has been growing by 30.06% on average per year.
• The Earnings Per Share is expected to grow by 17.88% on average over the next years. This is quite good.
• The Revenue is expected to grow by 22.93% on average over the next years. This is a very strong growth

Exploring NASDAQ:AXON's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:AXON scores a 7 out of 10:

• An Altman-Z score of 8.68 indicates that AXON is not in any danger for bankruptcy at the moment.
• AXON has a better Altman-Z score (8.68) than 95.31% of its industry peers.
• AXON has a Debt to FCF ratio of 4.19. This is in the better half of the industry: AXON outperforms 79.69% of its industry peers.
• AXON has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 2.91 indicates that AXON has no problem at all paying its short term obligations.
• With a decent Current ratio value of 2.91, AXON is doing good in the industry, outperforming 70.31% of the companies in the same industry.
• AXON has a Quick Ratio of 2.55. This indicates that AXON is financially healthy and has no problem in meeting its short term obligations.
• AXON has a Quick ratio of 2.55. This is amongst the best in the industry. AXON outperforms 84.38% of its industry peers.

Profitability Analysis for NASDAQ:AXON

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:AXON, the assigned 7 is noteworthy for profitability:

• With an excellent Return On Assets value of 7.25%, AXON belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
• The Return On Equity of AXON (14.43%) is better than 81.25% of its industry peers.
• With an excellent Profit Margin value of 15.60%, AXON belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
• In the last couple of years the Profit Margin of AXON has grown nicely.
• AXON's Operating Margin of 9.19% is fine compared to the rest of the industry. AXON outperforms 68.75% of its industry peers.
• AXON's Operating Margin has improved in the last couple of years.
• AXON has a Gross Margin of 60.16%. This is amongst the best in the industry. AXON outperforms 95.31% of its industry peers.

How does the Setup look for NASDAQ:AXON

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:AXON is 7:

AXON has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 291.91, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of AXON

Our latest full technical report of AXON contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.